Rehab board acknowledges serious failings in stewardship

Rehab chairman Brian Kerr and the disability group’s board have acknowledged serious failings in their stewardship of the organisation, which has been mired in political controversy for months.

Two days before his appearance at the Dáil Public Accounts Committee and a week after the resignation of former chief executive Angela Kerins, Mr Kerr has said Rehab’s reputation has been “seriously damaged” by recent events.

The group, which receives €82 million in annual State payments, has been heavily criticised across the political spectrum for its slow and partial response to questions over its internal affairs.

“We recognise that our response as a board to recent political and public demands for information has been inadequate,” Mr Kerr said in a letter this morning to staff.

He attributed this to “legal constraints” on the board in respect of the disclosure of information about the terms and conditions of senior management figures in the group. He also said the business and governance structure of the group was “not adequate” to manage a very challenging and changing situation.

“In addition, we recognise that as a board we have not exercised strict and appropriate oversight of certain issues which have come to public attention in recent weeks.”

Rehab has now engaged management consultant Dr Eddie Molloy to conduct a fundamental review of the group’s operations, structures and governance.

The Rehab board remains in place but Mr Kerr said the group was committed to making whatever changes are necessary, including board changes, to ensure the organisation can recover confidence.

“The board’s priority now is to initiate a programme of transformation and change which will allow us to candidly confront the issues before us and to rebuild the reputation, staff morale and effectiveness of the organisation,” he said.

“Importantly, this programme of change must strive to recover the confidence and trust of the people who use our services, our staff, the people of Ireland who fund us, including the Government, and other stakeholders - not least our colleagues in the charity sector who have suffered because of the fall-out over the current controversy.”

It remains unclear whether Ms Kerins and former Rehab director Frank Flannery, who resigned last month, will appear at the PAC.

The committee has questions about Ms Kerins’ past pay and bonus payments, Mr Flannery’s pension and business dealings in 2010 between Rehab and a company owned by Ms Kerins’ husband and brother and Mr Flannery.

The company also has questions about the low profitability of the group’s charity lottery products, which been highlighted by Minister for Justice Alan Shatter.